Businesses dealing with serious financial challenges sometimes can improve their circumstances by filing for commercial bankruptcy to reorganize their assets. This could be the case with a Tennessee shopping center that recently filed for Chapter 11 bankruptcy.
An official for the mall filed the petition in regards to the Mt. Juliet Commons shopping center, according to a report in The Tennessean. This strip mall is located on Lebanon Road in Mt. Juliet. According to the documents, the mall has slightly over $3.9 million of debt. It lists a little more than $1.6 million in assets.
However, of the mall’s seven units, six are now leased to businesses. According to the news report, these businesses include Tangles Salon, Tennessee Farm Bureau, Polished Nail Salon, Summit Realty Group and the restaurants Los Compadres and Painturo’s.
In the court filing, the debtor of record stated that the plan for the business bankruptcy is to reorganize. According to property records, he is the registered agent for Mt. Juliet Commons Limited Partnership, which is the owner of property.
By filing a Chapter 11 bankruptcy, a debtor has the opportunity to restructure and negotiate debts while the business continues to operate, pending a ruling with the court. Anyone with a business facing financial strife should consider all the legal options to deal with those issues. Business bankruptcy does not have to be the end of the road. Many businesses emerge from the process on firmer financial ground.
Source: The Tennessean, “Strip mall seeks bankruptcy protection,” Andy Humbles, Oct. 18, 2012